Low Cost Hotel

Introductions

There are many strategies you can choose to run your business. One of those choices is low-cost strategy. Lowson ( 2002, p. 51) describe competing on cost as; Ð''The relentless elimination of all waste in the entire cost structure. This is not a short term strategy, it requires a long-term and thorough commitment to the search for operating cost reduction in order to achieve competitive advantage on the basis of being the lowest cost player. However, this does not mean cutting back on investment. Updates facilities, equipment, program and systems to streamline operations, skill training and development are all essential capabilities.'

The implementations of low-cost strategy were very useful in various types of industries.

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A short explanations about Bali

Bali lies directly north of Australia, the middle pearl in the necklace of islands stretching from Malaysia to New Guinea which comprise the modern nation of Indonesia. Geographically small but culturally immense, Bali has fascinated and influenced visitors from the outside world for centuries. Combining elements of Hinduism and Buddhism with earlier animist beliefs, Balinese religion pervades all aspects of everyday life. Every human activity, from rice growing to massive temple ceremonies, is approached with ritual and reverence. The Balinese performing arts occupy a central place in the life of every village, and continue to inspire tourist around the world.

According to Biro Pusat Statistik Indonesia (Indonesian Central Board of Statistic) number of visitor that comes to Bali per day is 3,756 or 1,370,940 persons a year. With an average length of stay for foreign 3.69 days (2005) and for Indonesian tourist 3.29. Thus, has made Bali a good place for investing in hotels business.

Number Of Accommodation, Average Worker, And Visitor Per Day By Province, Indonesia 2006

Non Classified

Province Number Of Average Worker Per Guests Per Day

Establishment Room Bed Establishment Room Indonesian Foreign Total

Nanggroe Aceh Darussalam 118 2,032 4,130 5.3 0.3 456 1 457

North Sumatera 592 10,120 15,478 5.9 0.3 3,728 53 3,781

West Sumatera 198 2,665 5,158 5.6 0.4 835 22 857

R i a u 200 4,682 8,114 10.1 0.4 1,800 4 1,804

J a m b i 110 2,100 3,517 6.5 0.3 547 1 548

South Sumatera 193 3,960 7,163 9.7 0.5 1,082 2 1,084

Bengkulu 73 1,189 2,100 7.6 0.5 244 1 245

Lampung 151 2,941 6,027 8.4 0.4 1,004 1 1,005

Kep. Bangka Belitung 48 712 1,079 12.2 0.8 188 2 190

Kepulauan Riau 185 5,178 6,005 11.2 0.4 754 409 1,163

DKI Jakarta 190 7,876 11,638 32.7 0.8 11,913 80 11,993

West Java 1,010 21,733 37,268 11.8 0.6 8,132 39 8,171

Central Java 987 17,001 27,985 7.5 0.4 7,720 37 7,757

DI Yogyakarta 1,052 11,138 17,376 4.4 0.4 3,363 49 3,412

East Java 1,254 21,601 35,693 9.2 0.5 10,265 73 10,338

B a n t e n 98 2,237 3,786 10.7 0.5 819 2 821

B a l i 1,419 20,900 32,046 12.2 0.8 2,059 1,697 3,756

West Nusa Tenggara 291 3,496 6,233 6.4 0.5 391 138 529

East Nusa Tenggara 209 3,093 5,972 6.1 0.4 307 41 348

West Kalimantan 183 3,656 5,581 7.4 0.4 1,345 29 1,374

Central Kalimantan 219 3,945 6,087 4.9 0.3 729 2 731

South Kalimantan 154 3,323 5,108 7.9 0.4 1,090 2 1,092

East Kalimantan 346 6,943 10,513 9.5 0.5 1,842 19 1,861

North Sulawesi 76 1,390 1,955 10.2 0.6 586 11 597

Central Sulawesi 175 2,028 3,382 5.1 0.4 438 5 443

South Sulawesi 347 5,454 9,478 7.9 0.5 1,781 19 1,800

South East Sulawesi 166 1,794 3,082 5.9 0.5 310 3 313

Gorontalo 59 843 1,361 5.4 0.4 116 1 117

West Sulawesi 62 765 1,382 4.7 0.4 177 1 178

M a l u k u 81 1,115 1,718 5.1 0.4 125 8 133

Maluku Utara 53 759 1,003 6.2 0.4 148 1 149

West Irian Jaya 38 698 1,046 9.1 0.5 98 2 100

P a p u a 67 1,471 2,288 12.3 0.6 213 6 219

Indonesia 10,404 178,838 290,752 8.9 0.5 64,605 2,761 67,366

Average Length Of Stay Of Foreign Guests In Classified Hotel By Province, Indonesia 2001-2005 (Nights)

Province 2001 2002 2003 2004 2005

Nanggroe Aceh Darussalam 2.35 2.97 3.25 1.72 4.05

North Sumatera 2.29 2.91 3.26 1.91 1.89

West Sumatera 3.46 3.68 4.18 3.15 2.71

R i a u 2.07 2.00 1.81 1.74 1.77

J a m b i 1.80 1.70 1.86 1.47 1.70

South Sumatera 2.65 2.78 2.52 2.68 4.22

Bengkulu 2.68 2.38 4.11 2.79 3.78

Lampung 2.28 2.73 2.39 2.78 4.20

Kep. Bangka Belitung - 4.56 2.66 4.28 4.00

DKI Jakarta 2.85 2.80 2.64 2.76 2.86

West Java 2.32 3.30 3.37 3.35 3.03

Central Java 2.73 2.10 2.11 1.67 1.76

DI Yogyakarta 2.88 3.34 3.72 2.92 1.97

East Java 2.78 2.82 3.07 3.48 2.78

B a n t e n - 1.21 1.20 1.96 1.24

B a l i 4.35 4.14 4.01 3.72 3.69

West Nusa Tenggara 3.29 2.98 3.22 2.98 3.73

East Nusa Tenggara 3.71 3.27 5.84 2.96 2.90

West